Branson fails in Australian airline bid

SIR Richard Branson has been foiled in his attempt to gain a controlling stake in collapsed Australian airline Ansett.

Branson, who owns the Virgin Blue airline in Australia, was in talks with Melbourne millionaires Solomon Lew and Lindsay Fox about taking control of Ansett.

But it is understood that Lew and Fox would agree to Branson having only a 50% stake.

Bankers working for Virgin are believed to have recommended that Branson should have a bigger share.

Had the deal gone ahead on Virgin's terms, the Ansett fleet would have been rebranded Virgin Blue.

But more importantly, Branson would have had control of Ansett's valuable air terminals in Australia, enabling him to sell a majority stake in the combined airline for £108 million to the Lang Corporationan Australian transport group.

Virgin Blue, which expects to make a profit of about £7 million this year, claims a 13% share of the Australian market.

Branson plans to sell a majority stake to an Australian company by the end of next year.

Under local trade regulations, this would give Virgin Blue access to routes between Australia and New Zealand.